KULDIP SINGH, J

1. THIS petition under Article 227 of the Constitution of India has been filed against the order dated 6.11.2012 passed by learned Civil Judge (Junior Division), Court No. V, Shimla in case No. 12/1 of 2012 rejecting the application under Section 8 of the Arbitration and Conciliation Act, 1996 (for short 'Act').

2. THE pleaded case of the petitioners is that the respondent has filed a suit for permanent prohibitory injunction against the petitioners restraining them from taking forcible possession of Scorpio SLX HP-63A-8100. The petitioners moved an application under Section 8 of the Act for referring the dispute between the parties for arbitration on the basis of agreement dated 15.4.2008.

M/s Mahindra and Mahindra Finance Services Ltd.(for short 'Company') is a non-banking financial company registered under the Companies Act, 1956. The respondent approached the Company for financial assistance for Scorpio SLX No. HP-63A-8100 and entered into an agreement with the Company on 15.4.2008 which contains an arbitration clause. The respondent committed defaults in repayment of loan. He was asked orally to pay the instalments in due time. At that stage the responde